organizations were added to subjects that can own the means of production, in
addition to the state and co-operative organizations.
(^53) On the other hand, the objects
of state ownership were reduced, while objects of private ownership, as well as those
of the ownership of social and co-operative organizations, were expanded.^54 Citizens
can own income from legal economic activities, in addition to the products of
individual sideline activities, including those from the gardens of co-operative
farmers.^55 This means that citizens can make money through commercial activities,
which was tolerated after the collapse of the public rationing system and is now
legalized by the Constitution. This amounts to the initial reception of a primitive
market economy. In this regard, creation of citizens’ freedom to travel should be
noted.^56 Individuals can travel for business as far as constitutional expression is
concerned, although residents still need licenses to travel. (This provision seems to
have been included to legalize residents’ travel to seek food – which was rampant
during the food crisis beginning in 1994 – and the state could not but accept such
travel, which was out of control as many were starving to death. Therefore, creation
of the freedom to travel was the acceptance of a fait accompli, but did not mean an
automatic improvement in citizens’ fundamental rights.) Protection of patent rights,
in addition to existing inventor’s rights and copyrights, was newly included in
consideration of the expanded protection of intellectual property rights.
57
This amendment also strengthened the autonomy of individual economic
entities. The state introduced an independent cost-accounting system in the eco-
nomic management system and utilized such economic levers as prime costs, prices,
and profits.
(^58) Expansion of the mode of independent enterprise will hopefully bring
about an expansion of autonomy in the economic management of individual
entities. Introduction of the concepts of costs, prices, and profits was concerned
with the introduction of a market economy, although constitutionalization of these
concepts would not bring about a market economy automatically.
Under the previous constitution, foreign-trade activities were monopolized by
the state. But this constitution allowed social and co-operative organizations to
engage in them.^59 The Constitution also provided a constitutional ground for
creating a special economic zone,^60 where foreign investors could enjoy broader
freedom of economic activity.^61
Although this amendment adopted some initial steps needed to begin the first
stage of creating a market economy, retention of the general socialist principle
of autarky, as well as the regime’s seemingly ongoing political inflexibility, still
(^531998) constitution, Art. 20. (^54) Ibid., Arts. 21 , 22 , and 24.
(^55) Compare Art. 24 of the 1998 constitution with that of the 1992 constitution.
(^561998) constitution, Art. 75. (^571998) constitution, Art. 74. (^58) Ibid., Art. 33.
(^59) Ibid., Art. 36. (^60) Ibid., Art. 37.
(^61) On the basis of this provision, the special laws to create the Mount Geumgang Tourist
Zone, the Gaeseong Industrial Complex, and the Sinuiju Special Administrative Region
were promulgated in 2002.